SOUTH KOREA June 19 2015 5:35 PM
SEOUL (Scrap Register): Steel demand on South Korea's hot rolled coil mills is subdued, amidst an inflow of low-priced imports from China and a slowing economic recovery, according to MEPS International.
Selling prices for hot rolled coil in South Korea remained steady from a month earlier in May.
Domestic oversupply, low-cost Chinese imports and poor demand from an ailing construction industry are depressing commodity plate transaction values. Moreover, the shipbuilding market is sluggish.
Orders in the cold rolled coil general market are depressed and vehicle sales are far from robust. This weak domestic consumption, combined with strong rivalry from Chinese suppliers, has forced local steelmakers to concede further discounts.
The South Korean vehicle manufacturers continue to push for price reductions because of slow sales at home and abroad. Building demand for coated material shows no substantial revival. Steelmakers have been forced to offer discounts. Prices have now undergone negative movements for five months in a row.
Rebar selling figures have slipped again. The negative movement has been caused by poor demand from a depressed building sector and highly attractive Chinese offers. Local producers are pinning their hopes on forecasts of better sales in the coming months.